Target profit rises as annual revenue crosses $100 billion
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2 min read . Updated: 01 Mar 2022, 06:30 PM IST - Retailer expects sales growth to continue in 2022
Target Corp. reported strong sales gains in the holiday quarter, capping off a two-year pandemic run during which the retailer grew its business by nearly $30 billion in revenue.
Comparable sales, which include sales from stores or digital channels operating for at least 12 months, rose 8.9% in the quarter ended Jan. 29 from a year prior, the company said. Digital sales increased 9.2%.
The results came after its big-box retail peer Walmart Inc. recorded rising sales at its U.S. stores open at least a year and stronger profit in the holiday period.
For the full year, Target’s revenue hit $106 billion, compared with $77.1 billion for the year ended Feb. 1, 2020, before the pandemic upended the global economy and consumer buying patterns.
Target has benefited from a surge in demand for home delivery and its service that allows customers to buy online and pick up in-store. Comparable sales during the most recent quarter rose by double-digit percentages across its five main categories of goods including food, apparel and home, the company said.
Overall profit rose nearly 12% to $1.54 billion, or $3.21 a share, in the quarter compared with the same period last year. Strong revenue growth helped offset higher supply-chain costs and spending on wages. Excluding one-time items, Target posted earnings of $3.19 a share, ahead of the $2.85 a share expected by analysts, according to FactSet.
On Monday, Target said it plans to raise wages this year, offering hourly workers a starting wage of $15 to $24 an hour.
For the current fiscal year, Target expects a low- to mid-single-digit percentage increase in revenue from 2021 and adjusted earnings per share to rise by a high-single-digit percentage. For the most recent year, adjusted earnings per share hit $13.56.
The company will hold an investor day and conference call to discuss earnings Tuesday morning.
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This story has been published from a wire agency feed without modifications to the text
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